PRIVATIZATION OF NORTH CAROLINA'S PORTS AND RAILROADS: A BOLD STEP FOR NORTH CAROLINA'S FUTURE

During the last few years, there has been much discussion in North Carolina concerning the fiscal constraints and problems of the state ports at Wilmington and Morehead City, and two substantially state-owned railroads--the North Carolina Railroad and the Atlantic & North Carolina Railroad. This report shows that privatization can (a) reduce many of these problems and constraints and (b) relieve North Carolina taxpayers of the need to provide continuing subsidies and from suffering opportunity costs due to lower-than-market rates of return on these state-owned enterprises. In applying the concept of privatization to the state ports and railroads, it is necessary to comprehend and appreciate the overall transportation problems of North Carolina as well as a number of very important issues and concerns. For example, the economic viability of the railroads and ports (Morehead City in particular) are interrelated to a very significant degree; and any solution to fiscal problems and constraints must take into account this fundamental reality. In addition, any proposals to drastically change the current operations of the ports and railroads must also take into account the need to ensure continued access for shippers and the future transportation needs of North Carolina's citizens. This report is predicated on such considerations. Recommendations presented in this report are as follows: (1) Conditional sale of Port of Wilmington as a port; (2) Conditional sale of North Carolina Railroad as a railroad; (3) Conditional sale of Port of Morehead City and Atlantic & North Carolina Railroad as a port/railroad enterprise package; and (4) As part of sale, the state should consider the concerns of port employees and should consider the possibilty of employee stock benefits.

  • Corporate Authors:

    Reason Foundation

    2716 Ocean Park Boulevard
    Santa Monica, CA  United States  90405
  • Authors:
    • Fixler Jr, P E
  • Publication Date: 1991

Media Info

  • Features: Tables;
  • Pagination: 25 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00618744
  • Record Type: Publication
  • Report/Paper Numbers: Policy Study No. 205
  • Files: TRIS
  • Created Date: Jan 31 1992 12:00AM